| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 4.61 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South and Central America Oil Field Services Market Analysis
The South And Central America Oil Field Services Market is expected to register a CAGR of 4.61% during the forecast period.
- Over the long term, factors such increasing number of offshore operations in the region and rising demand from unconventional hydrocarbons, like shale gas, etc, is expected to drive the market in the forecast period.
- On the other hand, as more renewable energy is used, the demand for hydrocarbons like natural gas to make electricity is expected to go down. This will slow the growth of the market during the forecast period.
- Nevertheless, shale oil and gas reserves have been discovered in Mexico and Argentina, and their exploitation is expected to create several opportunities for the South and Central American oil field services market in the future.
- Brazil is likely to see significant growth in the South and Central American oil field services market during the forecast period.
South and Central America Oil Field Services Market Trends
Drilling Services Expected to dominate the market
- Drilling is one of the most cost-intensive parts of the entire exploration and production (E&P) phase, and new wells are being drilled. Most estimates in the industry say that drilling costs more than 70% of the total cost of a well. Because of this, drilling services are expected to bring in a lot of money for the market.
- As the global demand for hydrocarbons has gone up and prices have gone up because of the conflict between Russia and Ukraine, most countries in the region are spending a lot of money drilling new wells to increase oil production and make more money from oil.The rig count in South and Central America increased from just 119 in January 2021 to 181 in February 2023.
- For instance, YPF, Argentina's state-run oil and gas producer, planned to invest USD 30 billion between 2018 and 2022. It wanted to increase hydrocarbon production by 5% per year until it reached 700,000 barrels of oil equivalent per day by 2022. The company planned to develop 29 projects and drill 1,600 wells. In January 2022, it was reported that Argentina's shale gas production witnessed a 42% YoY growth from January 2021, up to 69 million cubic meters per day.
- This is likely to open up new business opportunities for companies that make cooling systems. In September 2021, the government of Argentina passed a bill to encourage investment in hydrocarbons. The goal was to increase oil and gas exports and domestic production in the huge Vaca Muerta shale formation and elsewhere.
- Due to the above, the South and Central American oil field services market is expected to see a lot of growth in drilling services over the next few years.
Understand The Key Trends Shaping This Market
Download PDF
Brazil Expected to See Significant Market Growth
- Due to its deep-water and ultra-deep-water activities in the Atlantic Ocean, Brazil is likely to have a large share of the market. Exploration and production have grown a lot between 2021 and 2022, which has led to more money being spent on oilfield services.
- The growth during the last year mainly came from the offshore sector. The increased spending on oilfield services can be related to increased drilling and completion practices, which are expected to drive the demand for cooling systems for hydraulic systems.
- Brazil has a number of large-scale offshore upstream projects in the works, and it is expected that by 2025, the country will produce more than 20% of the world's offshore crude oil and condensate. According to the BP Statistical Review of World Energy, Brazil's oil production in 2022 was 3,107 thousand barrels per day.
- The majority of the production is expected to come from the Pão de Açúcar in the Campos basin and Carcará fields. With the commencement of production from these two fields, the demand for cooling systems in the upstream industry, as well as the midstream industry, is expected to increase significantly, driving the oilfield services market during the forecast period.
- Hence, owing to the above points, Brazil is likely going to see significant growth in the South and Central American oil field services market during the forecast period.
Get Analysis on Important Geographic Markets
Download PDF
South and Central America Oil Field Services Industry Overview
The South and Central America oil field services market is moderately fragmented. Some of the key players in this market (in no particular order) include Schlumberger NV, Transocean LTD, Weatherford International plc, Halliburton Company, and TechnipFMC PLC, among others.
South and Central America Oil Field Services Market Leaders
-
Schlumberger NV
-
Transocean LTD
-
Weatherford International plc
-
Halliburton Company
-
TechnipFMC PLC
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
South and Central America Oil Field Services Market News
- November 2022: Petrobras awarded Diamond Offshore's Ocean Courage a four-year project with an unpriced option for an additional four years in Brazil. The estimated total value of the firm term of the award, which includes a mobilization fee and the provision of some extra services, is about USD 429 million.The contract is expected to commence in Q4 2023.
- February 2022: Archer was awarded a two-year contract extension for drilling services in Argentina with an estimated total value of USD 400 million. The scope of the contract includes two drilling rigs, 13 workover units, and 13 pulling units on Pan American's Cerro Dragon field in the Golfo San Jorge basin in southern Argentina. The contract runs until Q2 2025.
South and Central America Oil Field Services Industry Segmentation
Oilfield services are the goods and services that are used to find and make oil and gas. This is the upstream part of the energy industry. Oilfield services are, in general, the activities and companies that help find, evaluate, develop, produce, and get rid of oil and gas resources. Several activities are involved in oilfield services, including finding and extracting oil or gas. However, most of the companies in this field do not manufacture petroleum products themselves.
The South and Central American oilfield services market is segmented by service, location of deployment, and geography. By service, the market is segmented into drilling services, completion services, production services, and others. By location of deployment, the market is segmented into onshore and offshore. The report also covers the market size and forecasts for the oilfield services market across major countries in the region. For each segment, market sizing and forecasts have been done based on revenue (USD).
Need A Different Region or Segment?
Customize Now
South and Central America Oil Field Services Market Research FAQs
What is the current South And Central America Oil Field Services Market size?
The South And Central America Oil Field Services Market is projected to register a CAGR of 4.61% during the forecast period (2025-2030)
Who are the key players in South And Central America Oil Field Services Market?
Schlumberger NV, Transocean LTD, Weatherford International plc, Halliburton Company and TechnipFMC PLC are the major companies operating in the South And Central America Oil Field Services Market.
What years does this South And Central America Oil Field Services Market cover?
The report covers the South And Central America Oil Field Services Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South And Central America Oil Field Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
South and Central America Oil Field Services Industry Report
Statistics for the 2025 South And Central America Oil Field Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South And Central America Oil Field Services analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
